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No Free 'Skyboxes'

Stephen E. Phillips (letter, March 26) says that owners of luxury ''skyboxes'' in arenas take a tax deduction for the entire cost of entertaining. The Internal Revenue Code states otherwise. Section 274(l)(2) limits the computation of the skybox expense to the cost of the same number of regular box seats. Section 274(n), which covers meals and entertainment expenses, then says that only half of that amount is tax-deductible.

While we might consider the resulting tax deduction inappropriate, we should nonetheless acknowledge that the Government has shown some awareness of the issues and sensitivity to the relevant considerations.